Frequently Asked Questions (FAQs)

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  • Who is a DP?

    A Depository like NSDL (National Securities Depository Limited) or CDSL (Central Depository Services Limited) provides its services to investors through its agents called Depository Participants (DPs). These agents are appointed by NSDL & CDSL with the approval of SEBI. According to SEBI regulations, amongst others, three categories of entities i.e. Banks, Financial Institutions and Members of Stock Exchanges registered with SEBI (brokers) can become DPs. You can get a list of DPs from NSDL's or CDSL's office.

    Our Bank has now centralised DP operations (both for CDSL as well as NSDL) besides existing DPs, which are being planned to be migrated to central set-up in a phased manner. The Central Back-Office DP Operations (CBODPO) is at UTI Tower, Bandra Kurla Complex, Mumbai.

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  • How do I select a DP? Whether all DPs are same?

    You can select your DP to open a demat account just like you select a bank for opening a savings account. Some of the important factors for the selection of a DP can be:

    Convenience: Proximity to the office/residence, business hours.

    Comfort:Reputation of the DP, past association with the organisation, whether the DP is in a position to give the specific service you may need.

    Cost: The service charges levied by DP and the service standards-

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  • What should I do when I want to open an account with a DP?

    You can approach any DP of your choice and fill up an account opening form. At the time of opening an account, you have to sign an agreement with DP in an NSDL prescribed standard agreement, which details your and your DP’s rights and duties. All investors have to submit the following proof of identity and proof of addresses along with the prescribed account opening form.

    Proof of Identity:Your signature and photograph must be authenticated by an existing demat account holder with the same DP or by your bank. Alternatively, you can submit a copy of your Passport, Voters ID Card, Driving License or PAN Card with photograph.

    Proof of Address:You can submit a copy of your Passport, Voters ID Card, Driving License or PAN Card with photograph, ration card or bank passbook as proof of address.

    Passport-size photograph: You must remember to take original documents to the DP for verification.

    You should remember to obtain a copy of the agreement and schedule of charges for your future reference.

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  • Can I open more than one account with the same DP?

    Yes. You can open more than one account with the same DP. There is no restriction on the number of accounts you can open with a DP.

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  • Am I restricted to having account with only one DP?

    No. There are no restrictions on the number of DPs you can open accounts with or the number of accounts you can open with a DP. Depository accounts are similar to bank accounts. Just as you can have savings or current accounts with more than one bank, you can open accounts with more than one DP.

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  • Can I open a single account for securities owned in different ownership patterns such as securities owned individually and securities owned along with my wife?

    No. The demat account must be opened in the same ownership pattern in which the securities are held in the physical form. E.g.: if one share-certificate is in your individual name and another certificate is jointly held in your and your wife's name, two different accounts would have to be opened.

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  • What do I do if I have physical certificates with the same combination of names, but the sequence of names is different i.e. some certificates with husband as first holder and wife as second holder and other set of certificates with wife as first holder and husband as the second holder (For example changed from A & B to husband & wife)?

    In this case, you may open only one account with husband and wife as the account holders and lodge the security certificates with different order of names for dematerialisation in the same account. You will fill up an additional form called the "Transposition cum Demat" form. This would help you to effect change in the order of names as well as dematerialise the securities.

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  • Why should I give my bank account details at the time of account opening?

    It is for the protection of your interest. Your bank account number will be mentioned on the interest or dividend warrant you are entitled to so that such warrant cannot be encashed by anyone else. Further, a DP cannot open the account if the bank account number is not given.

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  • Can I change the details of my bank account?

    Yes. Since in the depository system monetary benefits on your security balances are paid as per the bank account details provided by you at the time of account opening, you must ensure that any subsequent change in bank account details is informed to your depository participant.

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  • What is 'standing instruction' given in the account opening form?

    In a bank account, credit to the account is given only when a 'paying in' slip is submitted together with cash/cheque. Similarly, in a depository account 'receipt in' form has to be submitted to receive securities in the account. However, for the convenience of the investors, the facility of 'standing instruction' is given. If you say 'yes' (or tick) for standing instruction, you need not submit a 'receipt in' slip every time you buy securities.

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  • Can I close my demat account with one DP and transfer all securities to my account with another DP?

    Yes. You can submit an account closure request to your DP in a prescribed form. Your DP will transfer all your securities, as per your instruction, and close your demat account.

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  • Can I operate a joint account on an ‘either or survivor’ basis just like a bank account?

    No. The demat account cannot be operated on an ‘either or survivor’ basis like the bank account.

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  • Is it compulsory for every investor to open a depository account to trade in the capital market?

    Since 99.5 % of the settlement at the stock exchanges is taking place in the demat form, an investor buying securities would receive the securities in demat form only. Therefore, investors who actively buy and sell securities need to open a depository account to receive delivery of demat securities.

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  • What should I do if my address is changed? Do I need to write to each company separately?

    In case your address is changed, you only need to inform the new address to your DP(s). When DP enters the new address in the depository computer system, it will be automatically conveyed to all companies in which you hold shares.

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  • What are the benefits of a depository?

    The benefits of participation in a depository are:

    Immediate transfer of securities;

    No stamp duty on transfer of securities;

    • Elimination of risks associated with physical certificates such as bad delivery, fake securities, etc.
    • Reduction in paperwork involved in the transfer of securities;
    • Reduction in transaction cost;
    • Nomination facility;
    • Facility to pledge the securities.
    • Facility of trading in odd lots.

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  • What will be the charges for account opening and other depository-related transactions?

    NSDL charges the DPs and not the investors. NSDL's charges to its DPs are fixed. However, the DP is free to charge its client for the services offered. The charges that DP will be charging you for various services are mentioned in the schedule of charges, which forms a part of the account opening agreement. You may keep a copy of this for your future reference. You can get the details of the charges from the DPs. You can also get a comparative list of DP charges from NSDL's office or the NSDL website.

    Your DP may change charges by giving you 30 days’ notice in advance notice.

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  • What would be the charges for account closure and securities transfer due to account closing?

    The charges would be as per the schedule of charges agreed by you at the time of account opening or any subsequent changes therein.

    NSDL is allowing waiver of charges to DPs where all the securities in an account are moved to another account with another DP due to account closure, if account name remains the same. NSDL allows waiver of its charges for cases where NSDL charges to the DP are more than Rs. 100. Your DP may pass on this benefit to you.

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  • What is a depository?

    A depository can be compared to a bank. A depository holds securities (like shares, debentures, bonds, Government Securities, units, etc.) of investors in electronic form. Besides holding securities, a depository also provides services related to transactions in securities.

    Bank depository: An Analogy

    .
    Bank Depository
    Holds funds in an account Holds securities in an account
    Transfers funds between accounts on the instruction of the account holder Transfers securities between accounts on the instruction of the account holder....
    Facilitates transfer without having to handle money Facilitates transfer of ownership without having to handle securities
    Facilitates safekeeping of money Facilitates safekeeping of securities

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  • How can one avail the service of a depository?

    A depository interface with the investors through its agents called Depository Participants (DPs). If an investor wants to avail the services offered by the depository, the investor has to open an account with a DP. This is similar to opening an account with any branch of a bank in order to utilise the bank's services.

    Our Bank has now centralised DP operations (both for CDSL as well as NSDL) besides existing DPs, which are being planned to be migrated to central set-up in a phased manner. The central back-office DP Operations (CBODPO) is at UTI Tower, Bandra Kurla Complex, Mumbai.

    Our Identified CBS Branches can now open & operate demat accounts, if they are linked to Central Back Office DP Operations (CBODPO) of the Bank situated at UTI Tower, Bandra Kurla Complex, Bandra (East), Mumbai

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  • What are the facilities offered by a depository?

    A depository offers the following facilities:

    • Rematerialisation i.e., conversion of securities in demat form into physical certificates;
    • Electronic settlement of trades in stock exchanges connected to the depository.
    • Pledging/hypothecation of dematerialised securities against bank loan;
    • Electronic credit of securities allotted in public issues, rights issue;
    • Receipt of non-cash corporate benefits such as bonus in electronic form;
    • Freezing of demat accounts, so that the debits from the account are not permitted;
    • Nomination facility for demat accounts;
    • Services related to change of address;
    • Effecting transmission of securities;
    • Account monitoring facility through Internet (CDSL: Easy; NSDL: Speed-e).
    • Submission of delivery instructions through Internet ("Easiest" of CDSL and "Speede" of NSDL)
    • Other facilities viz. holding debt instruments in the same account, availing stock lending/borrowing facility, etc.

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  • Who is a Non-Resident Indian NRI

    An Indian citizen who stays abroad for employment/carrying on business or vocation outside India, or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. (Persons posted in the UN organisations and officials deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments are also treated as non-residents). Non-resident foreign citizens of Indian origin are treated on par with non-resident Indian citizens (NRIs).

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  • Who is a person of Indian origin?

    For the purposes of availing the facilities of opening and maintenance of bank accounts and investments in shares/securities in India:

    A foreign citizen (other than a citizen of Pakistan or Bangladesh) is deemed to be of Indian origin, if,

    • he/she, at any time, held an Indian passport; or
    • he/she or either of her/his parents, or grandparents. were a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955; or
    • Note: A spouse (not being a citizen of Pakistan or Bangladesh) of an Indian citizen, or of a person of Indian origin is also treated as a person of Indian origin for the above purposes, provided the bank accounts are opened or investments in shares/securities in India are made by such persons only jointly with their NRI spouses.
    • For investments in immovable properties. A Foreign citizen (other than a citizen of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka or Nepal), is deemed to be of Indian origin if,
    • he/she, at any time, held an Indian passport; or
    • OR

    • his/her father or parental grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).

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  • What is an OCB?

    Overseas Corporate Bodies (OCBs) are bodies predominantly owned by individuals of Indian Origin, or nationality resident outside India and include overseas companies, partnership firms, societies and other corporate bodies which are owned, directly or indirectly, to the extent of at least 60% by individuals of Indian nationality, or origin resident outside India as also overseas trusts in which at least 60% of the beneficial interest is irrevocably held by such persons. Such ownership interest should be actually held by them, and not in the capacity as nominees. The various facilities granted to NRIs are also available with certain exceptions to OCBs so long as the ownership/beneficial interest held in them by NRIs continues to be at least 60%.

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  • Are OCBs required to produce any certificate regarding ownership/beneficial interest in them by NRIs?

    Yes. In order to establish that the ownership/beneficial interest in any OCB held by NRIs is not less than 60%, the concerned body/trust is required to furnish a certificate from an overseas auditor/chartered accountant/certified public accountant in form OAC, where the ownership/beneficial interest is directly held by NRIs and further that such ownership interest is actually held by them and not in the capacity as nominees.

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  • What are the various facilities available to NRIs/OCBs?

    NRIs/OCBs are granted the following facilities:

    • Maintenance of bank accounts in India
    • Investments in securities/shares of, and deposits with, Indian firms/companies.
    • Investments in immovable properties in India.

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  • Can I pledge dematerialised securities?

    Yes. In fact, pledging dematerialised securities is easier and more advantageous as compared to pledging physical securities.

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  • What should I do if I want to pledge electronic securities?

    The procedure is as follows:

    • Both you (pledgor) and the lender (pledgee) must have depository accounts;
    • You have to initiate the pledge by submitting to your DP the details of the securities to be pledged in a standard format;
    • The pledgee has to confirm the request through his DP;
    • Once this is done, your securities are pledged
    • All financial transactions between the pledgor and the pledgee are handled as per usual practice outside the depository system.

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  • How can I close the pledge after repayment of my loan?

    After you have repaid your loan, you can request for a closure of the pledge by instructing your DP in a prescribed format. The pledgee, on receiving the repayment, will instruct his DP accordingly for the closure of the pledge.

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  • Whether pledgee account can be in a different DP?

    Yes. The pledgee can have an account with a different depository participant of NSDL.

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  • Can I change the securities offered in a pledge?

    Yes; if the pledgee agrees, you may change the securities offered in a pledge.

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  • Who would receive the corporate benefits on the pledged securities?

    The securities pledged are only blocked in the account of the pledgor in favour of the pledgee. The pledgor would continue to receive all the corporate benefits.

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  • Where can an NRI open a demat account

    NRI can open a demat account with any Depository Participant. The NRI needs to mention the type ('NRI' as compared to 'Resident') and the sub-type ('Repatriable' or 'Non-Repatriable') in the account opening form collected from the Depository Participant.

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  • Does an NRI need any RBI permission to open demat account?

    No permission is required from RBI to open a demat account. Holding securities in demat only constitutes change in form and does not need any special permission.

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  • Where can an NRI open a demat account?

    NRI can open a demat account with any of our identified branches for opening a demat account. The NRI needs to mention the type ('NRI' as compared to 'Resident') and the sub-type ('Repatriable' or 'Non-Repatriable') in the account opening form collected from the depository participant

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  • Does NRIs require to take permission for dematerialisation/rematerialisation of securities?

    No special permission is required. Holding securities in demat only constitutes a change in form and does not need any special permission. Permission is taken (where required) at the time of acquiring the securities is adequate.

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  • Can securities purchased under repatriable and non-repatriable category be held in a single demat account?

    No. An NRI must open separate demat accounts for holding repatriable and non-repatriable securities.

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  • How does an NRI dematerialise securities purchased while he/she was resident?

    As per FEMA rules, NRIs must regularise his/her holdings to reflect a change of status- in this case, bring them to 'Non-Resident' status. For this, NRI must submit (if not already submitted to the issuing company earlier) a letter addressed to the issuing company along with the demat request form stating a change of status and giving details of foreign address.

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  • What are the procedures to be followed in respect of investment in securities in case person resident in India becomes NRI?

    On becoming an NRI, a new depository account with appropriate NRI status is to be opened and all the balances held in account with 'Resident' status should be transferred to the account with NRI status & securities, held under this account will be treated on non-repatriable basis.

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  • What are the procedures to be followed in respect of investment in securities in case NRI becomes person resident in India?

    On becoming a resident, a new depository account with appropriate status - 'Resident' in this case, is to be opened and all the balances held in account with 'Non-Resident' status should be transferred to 'Resident' status.

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  • Can an NRI purchase securities by subscribing to an issue? What are the approvals required?

    The issuing company is required to issue shares to NRIs on the basis of specific or general permission from Government of India/RBI. Therefore, individual NRI need not obtain any permission.

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  • Can an NRI purchase securities in the secondary market? What are the approvals required in the new FEMA rules?

    Purchases made in the secondary market are investments under Portfolio Investment Scheme. Permission to buy in the market is given by authorised dealers under the Portfolio Investment Scheme on a repatriable/non-repatriable basis. The said permission is a one-time general permission.

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  • Does an NRI require any permission to subscribe to Rights issue of a company?

    No

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  • Does an NRI require any permission to receive bonus shares?

    No

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  • Can an NRI nominate or be nominated in depository account? Whether such nominee can be person resident in India?

    Yes

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  • Can an NRI and person resident in India have a joint demat account?

    Yes. For the purpose of determining ownership of holding, the first holder is taken into account. Hence, even though other joint holders may be people resident in India, the sale proceeds of such securities can be repatriated in case the first holder is permitted to repatriate funds.

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  • What are the permissions required for off-market transfer of securities?

    From NRI to NRI- No permission from person resident- No permission outside India to person resident in India (Gift) from person resident in- Application to RBI India to person resident by transferor outside India (Gift) From person resident in - Approval from GoI India to person resident and then RBI, if the outside India (Sale) acquisation is on repatriable basis. But if acquisation is on non-repatriable basis, approval only From person resident - RBI Permission outside India to person through form Ts1 resident in India (Sale).

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  • What type of bank accounts are to be given at the time of account opening and subsequently (by way of change of details)?

    The bank details recorded by the Depository Participant may be used by the issuer of securities to directly credit the dividend or interest. The following bank accounts may be given:

    For non-repatriable: NRO (dividend/interest is repatriable)- NRSR (dividend/interest is not repatriable)

    For repatriable: NRE.

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  • Who can nominate?

    Nomination can be made only by individuals holding beneficiary accounts either singly or jointly non-individuals including society, trust, body corporate, partnership firm, Karta of Hindu Undivided Family, holder of power of attorney cannot nominate.

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  • Can joint holders nominate?

    Yes. Nomination is permitted for accounts with joint holders. But, in case of death of any of the joint holders, the securities will be transmitted to the surviving holder(s). Only in the event of the death of all the joint holders, the securities will be transmitted to the nominee.

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  • Can an NRI nominate?

    Yes, NRI can nominate directly. But, the power of attorney holder cannot nominate on behalf of NRI.

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  • Can a minor nominate?

    No, a minor cannot nominate either directly or through its guardian

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  • Who can be a nominee?

    Only an individual can be a nominee. A nominee shall not be a society, trust, body corporate, partnership firm, Karta of Hindu Undivided Family or a power of attorney holder.

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  • Can there be more than one nominee?

    No, at present only one nomination can be made for one demat account.

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  • Can a minor be a nominee?

    Yes, a minor can be a nominee. In such a case, the guardian will sign on behalf of the nominee and in addition to the name and photograph of the nominee, the name, address and the photograph of the guardian must be submitted to the DP.

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  • Can separate nominations be made for each security held in a depository account?

    No. Nominations can be made account wise and not security wise.

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  • Can an NRI be a nominee?

    Yes, NRI can be a nominee subject to the exchange control regulations in force from time to time.

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  • What is the procedure for nomination?
    • The nomination form (format provided in account opening form) duly filled-in should be submitted to the branch DP either at the time of account opening or later. The account holder, nominee and two witnesses must sign this form and the name; address and photograph of the nominee must be submitted. (Photograph of nominee is not required in case the account is opened with CDSL DP/branch)
    • If the nomination was not made at the time of account opening, it can be made subsequently by submitting the nomination form.

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  • Can the nominee be changed?

    Yes, the nomination can be changed anytime by the account holder/s by simply filling up the nomination form once again and submitting it to the branch DP.

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  • What is meant by dematerialisation?
    • Dematerialisation is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited in the investor's account with his DP.
    • In order to dematerialise certificates, an investor will have to first open an account with a branch DP and then request for the dematerialisation of certificates by filling up a dematerialisation request form (DRF), which is available with branch DP and submitting the same along with the physical certificates.
    • The investor has to ensure that before the certificates are handed over to the branch DP for demat, they are defaced by marking "Surrendered for Dematerialisation" on the face of the certificates. (PLEASE NOTE THAT THIS DEFACING IS NOT REQUIRED TO BE DONE BY THE CLIENT IN CASE DEMAT ACCOUNT IS OPENED WITH CDSL DP. The defacing is the responsibility of the branch DP in case of CDSL demat account)

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  • Can one dematerialise any share certificate?
    • One can dematerialise only those certificates that are already registered in one's name and are in the list of securities admitted for dematerialisation at NSDL or CDSL.
    • All the scrips included in S&P, CNX, NIFTY and BSE SENSEX have already joined NSDL/CDSL. This list has more than 3,700 companies and is steadily growing.
    • The investor can get an updated list of these companies from our branch DP or from NSDL's / CDSL's office or NSDL/CDSL's website at www.nsdl.com and www.cdslindia.com

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  • What precautions demat account holder should take before defacing a share certificate?
    • He/she must ensure that it is available for dematerialisation. He/she must therefore check with his/her branch Depository Participant whether the ISIN (code number for the security in a depository system) has been activated and made available for dematerialisation by the depository.
    • If yes, then he/she should submit Demat Request Form along with the physical certificates. He/she should NOT deface the certificates. (In case of NSDL, a client is advised to affix the relative rubber stamp "Surrendered for Dematerialisation" on share certificates) PLEASE SEE POINT 36 ABOVE.

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  • How long does the dematerialisation process take?

    Dematerialisation will normally take about 30 days.

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  • What if it takes more than 30 days for dematerialisation of the shares?
    • If the process of dematerialisation takes more than 30 days, the client should be advised suitably by the branch DP (after contacting CBODPO, if required). If the client has a grievance, he should submit the grievance to the branch/DP for redressal.
    • A copy of the grievance should also be sent to the bank's Central Back Office DP Operations (CBODPO) at the following address: Bank of Baroda,

    Central Back Office DP Operations,

    (CBODPO),

    UTI Tower,

    Gn Block, Bandra Kurla Complex,

    Bandra (East),Mumbai- 400 051

    Email: demat@bankofbaroda.com

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  • Can an investor dematerialise his/her debt instruments, mutual fund units, government securities also in his/her demat account?

    Yes. He/she can dematerialise and hold all such investments in a single demat account.

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  • What is the procedure for selling dematerialised securities?
    • The procedure for selling dematerialised securities is very simple. After the demat account holder has sold the securities, he/she would instruct branch DP to debit his/her account with the number of securities sold by him/her and credit his/her broker's clearing account. This delivery instruction has to be given to branch DP using the delivery instruction slips given to the account holder by branch DP at the time of opening the account. The procedure for selling securities is given here below:
    • He/she sells securities in any of the stock exchanges linked to NSDL/CDSL through a broker.
    • He/she gives instruction to branch DP to debit his/her account and credit the broker's (clearing member pool) account.
    • Before the pay-in day, the broker instructs DP for delivery to the clearing corporation.
    • His/her broker receives payment from the stock exchange (clearing corporation)
    • He/she receives payment from the broker for the sale of securities.

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  • How can an investor/demat account holder purchase dematerialised securities?
    • For receiving demat securities, the demat account holder may give a one-time standing instruction to his/her branch DP. This standing instruction can be given at the time of account opening or later. He/she may also choose to give separate receipt instructions every time some securities are to be received. However, it is advisable to give standing instructions for "credits" at the time of opening demat account.
    • The transactions relating to the purchase of securities are summarised below:
    • Demat account holder purchases securities through a broker;
    • He/she makes payment to his/her broker who arranges payment to clearing corporation on the pay-in day;
    • His/her broker receives a credit of securities in clearing account on the pay-out day;
    • His/her broker gives instructions to branch DP to debit clearing account and credit his/her account;
    • He/she receives shares into his/her demat account. However, if standing instructions are not given at the time of opening the account, he/she will have to give 'Receipt Instructions' to his/her branch DP for receiving credit,
    • He/she should ensure that his/her broker transfers the securities purchased from his (broker's) clearing account to his/her (client's) depository account, before the book closure. If the securities remain in the clearing account of the broker, the company may give corporate benefits to the broker. In that case, he/she will have to collect benefits from his/her broker.

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  • What do 'market trades' and ‘off market trades’ mean?
    • Any trade settled through a clearing corporation is termed as the 'market trade'. These trades are done through stockbrokers on a stock exchange.
    • 'Off market trade' is one that is settled directly between two parties without the involvement of a clearing corporation. The same delivery instruction slip can be used either for market trade or off-market trade by ticking one of the two options.

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  • If the client sells securities through a sub-broker, which part of the delivery instruction slip has to be filled?

    If the client is delivering securities to his/her sub-broker, he/she would need to fill-in the off-market trade portion of the delivery instruction slip.

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  • What settlement details are required on the delivery instruction slip and when delivery is to be given to a broker?
    • On every stock exchange, various settlements are effected every day such as weekly settlement, daily settlement, auction settlement, etc. Each of these settlements is identified by the combination of the market type and the settlement number.
    • Clients are required to mention the appropriate settlement details on the delivery instruction slip while transferring the shares to his/her broker's account. These settlement details are available on the contract note issued by the broker.

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  • How client comes to know about the settlement deadlines?

    The branch depository participant with whom the demat account is maintained will prescribe the deadlines (as advised by CBODPO, if it is an authorized branch) to be followed by the client for submission of delivery instruction slips. He/she should deliver instructions to the branch DP as per these deadlines.

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  • When an investor buys shares, in how much time should he/she receive the securities from his/her broker?

    The broker is expected to transfer the securities to the client's demat account within two working days or four calendar days after securities are received in his pool account, provided the client has made the requisite payment to the broker.

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  • What precautions, the demat account holder(s) need to observe with respect to Delivery Instruction Slips (DIS)?

    The following precautions are to be taken by a demat account holder (these should be advised by branch DP to the client):

    • Account holder should ensure and insist with branch DP to issue DIS book; Branch DP should not issue loose slips.
    • Ensure that DIS numbers are pre-printed and branch DP takes acknowledgment from the client for the DIS booklet issued to him/her.
    • Client should ensure that his/her account number [client id] is pre-stamped.
    • If the demat account is a joint account, all the joint holders have to sign the instruction slips. Instruction cannot be executed if all joint holders have not signed.
    • Client is advised not to leave a signed blank DIS with anyone viz., broker/sub-broker/branch's staff.
    • Keep the DIS book under lock and key when not in use.
    • If only one entry is made in the DIS book, strike out the remaining space to prevent misuse by anyone.
    • The client should fill in the target account ID and all details in DIS herself/himself.

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  • What is the 'execution date' given in the delivery instruction form?
    • Execution date is the date on which securities will be actually be debited from your account. The execution date written on the delivery instruction has to be entered by the branch DP in the DEBOS/other system. When this is uploaded to DPM/CDAC by CBODPO or by DP to DPM/CDAC, the depository's system will record the date and will debit the client's account only on that date.
    • Client may issue the instruction well in advance of the date on which he/she wants the securities to be debited from his/her account but his/her account will be debited only on the execution date.

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  • What benefit does a client get by giving a delivery instruction slip with a future execution date?

    By giving a future dated instruction the risk of non-execution of instruction due to lack of time or last-minute rush is covered

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  • What is the importance of record dates to a client?

    In case the securities bought by the client are yet to be transferred into his/her account by his/her broker before the book closure/record date, he/she will not be entitled to receive corporate benefits such as dividend or bonus since client's name will not figure in the list of beneficial owners. Hence, the client must ensure that securities bought by him/her are transferred into his/her account before the book closure/record date announced by the company.

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  • Can one buy and sell shares through depository participant?

    No. Shares can be bought and sold only through a stockbroker. Our branch DP facilitates delivering the shares against a sell transaction or receiving the shares for a buy transaction.

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  • Who will give the corporate benefits arising out of the client's holdings to him/her?

    The benefits will be given by the company If at the time of book closure/record date, shares are in the client's broker's account the company will give the corporate benefits (dividend/bonus) to the broker and the broker has to pass on the same to the client.

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  • How would the client get his/her dividend/interest or other cash entitlements?
    • The concerned company obtains the details of beneficiary holders and their holdings as on the date of the book closure/record date from NSDL/CDSL.
    • The payment to the investors will be made by the company through the ECS (Electronic Clearing Service) facility or by issuing warrants on which the client's bank account details are printed.
    • The bank account details will be those which the client would have mentioned in his/her account opening form or changed thereafter.

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  • How would the client get his/her bonus shares or other non-cash entitlements?
    • The concerned company obtains the details of beneficiary holders and their holdings as on the date of the book closure/record date from NSDL/CDSL.
    • The client's entitlement will be credited by the company directly in the client's demat account.

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  • In case of discrepancies in corporate benefits whom the client should contact?

    In case of discrepancies in corporate benefits, the client can approach branch DP or the company/its R&T Agents.

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  • How will the investor confirm that bonus/rights entitlement is credited into the account?
    • An allotment advice will be sent by the issuer/ their R&T agent for bonus/rights entitlement.
    • The transaction statement given by the branch DP, will also show the bonus/rights credit into the account.
    • The quantity shown in the advice and statement of transactions should match.

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  • Can the client pledge dematerialised securities?

    Yes. In fact, pledging dematerialised securities is easier and more advantageous as compared to pledging physical securities.

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  • What should the client do if he/she wants to pledge electronic securities?

    The procedure is as follows:

    • Both you (pledgor) and the lender (pledgee) must have depository accounts;
    • You have to initiate the pledge by submitting to your DP the details of the securities to be pledged in a standard format;
    • The pledgee has to confirm the request through his DP;
    • Once this is done, your securities are pledged
    • All financial transactions between the pledgor and the pledgee are handled as per usual practice outside the depository system.

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  • How can the client close the pledge after repayment of his/her loan?

    After you have repaid your loan, you can request for a closure of the pledge by instructing your DP in a prescribed format. The pledgee, on receiving the repayment, will instruct his DP accordingly for the closure of the pledge.

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  • Whether pledgee account can be in a different DP?

    Yes. The pledgee can have an account with a different depository participant of NSDL or CDSL i.e. both the DPs should be of the same depository.

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  • Can the client change the securities offered in a pledge?

    Yes, if the pledgee (lender) agrees, client may change the securities offered in a pledge.

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  • Who would receive the corporate benefits on the pledged securities?

    The securities pledged are only blocked in the account of the pledgor in favour of the pledgee. The pledgor would continue to receive all the corporate benefits.

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  • What will be the charges for account opening and other depository-related transactions?
    • NSDL/CDSL charges the DPs and not the investors. NSDL/CDSL charges to their DPs are fixed. However, the DP is free to charge its client for the services offered. The charges that DP will be charging a demat account holder (opened with NSDL) for various services are mentioned in the Schedule of Charges which forms a part of the account opening agreement. Client may keep a copy of this for his/her future reference. Client can get the details of the charges from the branch DP in case of account opened under CDSL.
    • DP/Bank may change charges by giving 30 days’ notice in advance to the clients.

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  • If the client's demat account is with NSDL or CDSL, can he/she receive his/her securities from an account holder having an account with some other depository in India?

    Yes. Inter depository transfers are possible.

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  • How will a client know that his/her branch DP has updated his/her demat account after each transaction?
    • Transaction Statement will be sent periodically by the CBODPO/ DP, which will detail current balances and the various transactions client has done through the depository account.
    • If a client so desires, branch DP may forward the request to CBODPO for the transaction statement at intervals shorter than the stipulated ones, at a cost.

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  • At what frequency will the client receive his/her transaction statement from CBODPO?

    The client will receive a holding statement from CBODPO/DP once in a quarter. If the client has done any transaction during the quarter, he/she will receive the statement within fifteen days of the transaction.

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  • What is to be done if there are any discrepancies in the transaction statement?
    • In case of any discrepancy in the transaction statement, the client can contact the branch DP. If the discrepancy cannot be resolved at the branch DP level, then the client should approach NSDL/CDSL
    • NSDL/CDSL also sends out a statement of holdings to a few clients, picked at random. In case the balance in Demat account as indicated by CBODPO/DP does not tally with the balance as indicated by NSDL/CDSL, the client can contact his/her branch DP/ NSDL/CDSL for clarification.
    • Client is advised to contact branch DP for seeking clarification.

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  • What is to be done if there are any discrepancies in the transaction statement?

    Simple. Inform the branch DP and obtain a duplicate transaction statement

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  • What security do a client do if the only proof of his/her holdings in the depository is merely a piece of paper indicating his/her account balance?

    No transaction can be effected in demat account without client's written authorisation. Further, if the client happens to be away for a long time, he/she has the facility of freezing demat account wherein only credits into demat account will be allowed and no debit will be possible.

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  • What will happen if DP goes bankrupt or stops operation?
    • Ours is a premier nationalized bank and a Government of India undertaking.
    • In a rare event of a Bank going bankrupt or closing the operation, the interests of the investors will be fully protected. In such a situation, the investor is given the option of either transferring the securities to a new DP or else he may rematerialise the securities.

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  • What do you mean by dematerialisation?

    Dematerialisation is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited in the investor's account with his DP.

    In order to dematerialise certificates; an investor will have to first open an account with a DP and then request for the dematerialisation of certificates by filling up a dematerialisation request form (DRF), which is available with DP and submitting the same along with the physical certificates. The investor has to ensure that before the certificates are handed over to the DP for Demat, they are defaced by marking "Surrendered for Dematerialisation" on the face of the certificates

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  • Can I dematerialise any share certificate?

    You can dematerialise only those certificates that are already registered in your name and are in the list of securities admitted for dematerialisation at NSDL or CDSL.

    All the scrips included in S&P, CNX, NIFTY and BSE SENSEX have already joined NSDL. This list has more than 3,700 companies and is steadily growing. You can get an updated list of these companies from your DP or NSDL's office or NSDL website at www.nsdl.co.in

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  • What precautions should I take before defacing a share certificate?

    Before defacing the share certificates, you must ensure that it is available for dematerialisation. You must therefore check with your Depository Participant (DP) whether the ISIN (code number for the security in a depository system) has been activated and made available for dematerialisation by the depository. If yes, then you may deface the share certificate. The certificates are defaced by marking "Surrendered for Dematerialisation" on the face of the certificate. The diagram given below shows the proforma of a defaced certificate.

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  • How long do the dematerialisation process take?

    Dematerialisation will normally take about 30 days.

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  • What if it takes more than 30 days for dematerialisation of the shares?

    If the process of dematerialisation takes more than 30 days, please contact your DP. If he is unable to help you, then you may send your grievance to:

    The Officer in Charge, Investor Grievance Cell

    National Securities Depository Limited

    4th Floor, Trade World,

    Kamala Mills Compound, SenapatiBapat Marg

    Lower Parel, Mumbai - 400 013

    Email: relations@nsdl.co.in

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  • What is DEA Fund?

    DEA Fund is Depositor’s Awareness and Education Fund, It is the scheme of RBI.

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  • The balances of various deposit accounts and other credits which are not operated for 10 years shall be credited to the fund.

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  • What is the frequency of transferring balances to the Fund?

    Monthly basis

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  • Can we claim the amount once it is transferred to the DEA fund of RBI?

    Yes

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  • What is the procedure to claim the amount?

    Visit the branch with KYC documents and fill the required form.

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  • Will I earn interest on my deposit?

    Yes

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  • Can his/her electronic holdings be converted back into certificates?
    • Yes. If demat account holder wishes to get back his/her securities in physical form, all he/she has to do is to request branch DP for Rematerialisation of the same.
    • 'Rematerialisation' is the term used for converting electronic holdings back into certificates. His/her branch DP will forward his/her request to CBODPO, which in turn will forward to NSDL/CDSL after verifying that he/she has the necessary balances.
    • NSDL/CDSL will intimate the registrar who will print the certificates and dispatch the same to him/her.

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  • What does transmission mean in relation to demat accounts?

    Transmission is the process by which securities of a deceased account holder are transferred to the account of the legal heirs/nominee of the deceased account holder. Process of transmission in case of dematerialised holdings is more convenient as the transmission formalities for all securities held in a demat account. It can be completed by submitting documents to your DP whereas in case of physical securities the legal heirs/nominee/surviving joint holder has to correspond with all the companies in which shares are held independently.

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  • What is the advantage of transmission?

    The major advantage in case of dematerialised holdings is that transmission formalities for all securities held in demat account can be completed just by interaction with the branch DP alone, unlike in the case of physical securities, where the claimant has to interact with the Issuer or its Registrar separately.

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  • What is the procedure for transmission of securities to the nominee in case of the death of the account holder?

    In case of the death of the sole holder, for the purpose of transmission of securities, the nominee has to submit a duly filled-in transmission form, notarised copy of the death certificate, and an affidavit in the prescribed format. After verifying these documents, the DP will transmit the securities to the account of the nominee.

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  • What would happen if no nomination is made for the account?

    In case the nomination is not made, the securities would be transmitted to the account of legal heir(s), as may be determined by an order of the competent court. However, in cases where the value of securities to be transmitted is less than Rs. 1 lakh, the DP may process the request based on submission of necessary letter of indemnity, surety, affidavits and NOC documents.

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  • What is the procedure for transmission in case of joint accounts?

    In the event of death of one of the joint holders, the securities will be transmitted to the surviving holder(s) on submission of the transmission form and notarised copy of the death certificate of the deceased joint holder to the DP. For transmission of securities, the account of the surviving holder(s) must be in the same sequence in which the names appear in the joint account to be closed.

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  • How will I know that my DP has updated my account after each transaction?

    Your DP will give you a transaction statement periodically, which will detail your current balances and the various transactions you have done through the depository account. If you so desire, your DP may provide the transaction statement at intervals shorter than the stipulated ones, probably at a cost. A format of statement of transactions is reproduced as Annexure.

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  • When will I receive my transaction statement from my DP?

    You will receive a transaction statement from your DP once in a quarter. If you have done any transaction during the quarter, you will receive the statement within fifteen days of the transaction.

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  • What is to be done if there are any discrepancies in my transaction statement?

    In case of any discrepancy in the transaction statement, you can contact your DP. If the discrepancy cannot be resolved at the DP level, you should approach NSDL.

    NSDL also sends out a statement of holdings to a few clients of DPs, picked at random. In case the balance in your account as indicated by your DP does not tally with the balance as indicated by NSDL, you can contact your DP/ NSDL for clarification.

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  • What happens if I lose my transaction statement?

    Simple. Inform your DP and obtain a duplicate transaction statement.

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  • What security do I have if the only proof of my holdings in the depository is merely a piece of paper indicating my account balance?

    No transaction can be effected in your account without your written authorisation. Further, if you are away for a long time, you have the facility of freezing your account, wherein only credits into your account will be allowed and no debit will be possible.

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  • What will happen if my DP goes bankrupt or stops operation?

    In a rare event of your DP going bankrupt or closing the operation, the interests of the investors will be fully protected. In such a situation, the investor will be given an option of either transferring the securities to a new DP or else he may rematerialise the securities.

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  • What precautions does NSDL take to protect the data in its depository system?

    The data carries a high importance in the NSDL depository system. NSDL has taken the necessary steps to protect the transmission and storage of data. The data is protected from unauthorised access, manipulation and destruction. The following back-up practices are adopted to protect the data:

    • Local back up
    • Remote back-up
    • Disaster recovery site

    In addition to this, every DP is required to take daily back-up, at the end of each day of operation.

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  • Can I freeze my account?

    The depository system provides the facility to freeze the depository accounts for any debits or for both, debits and credits. In an account that is ‘freezed for debits’, no debits will be permitted from the account, till the time it is defreezed. This is an additional security feature for the benefit of the investors.

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  • What should I do if my DP is unable to resolve my problem?

    In case of failure of a DP to resolve your grievance, you can write to the Investor Grievance Cell at the following address:

    The Officer in Charge, Investor Grievance Cell

    National Securities Depository Limited

    4th Floor, Trade World, Kamala Mills Compound,

    SenapatiBapat Marg, Lower P

    arel, Mumbai - 400 013.

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